Why ICHRA Plans Have Never Worked Well for Staffing Companies

How ICHRA Fails to Meet Industry Needs and How End of ACA Subsidies Changes Things

The staffing industry is all about speed and flexibility.

It deals with very high employee turnover, often over 400% a year for temp and contract workers. This means workers come and go quickly. Staffing companies also handle changing work hours, lower-paid employees, and tight budgets. For years, a benefit called ICHRA (Individual Coverage Health Reimbursement Arrangement) has been pushed as a smart option. It lets employers give workers tax-free money to buy their own health insurance on the Marketplace. But ICHRA has never really caught on in staffing because it doesn’t match the industry’s needs.

Now, the special ACA (Affordable Care Act) subsidies—extra help that made insurance cheaper—ended in 2025. This has caused average subsidized premiums to more than double, from $888 to $1,904 a year. This “subsidy cliff” might make ICHRA seem more useful at first, but it makes its problems worse. It could hurt hiring and keeping workers in a tough job market. In this simple article, I’ll explain why ICHRA isn’t a good fit for staffing, how the subsidy end affects it, and better choices—like the easy solutions from Benefits in a Card (BIC).

Why ICHRA Plans Have Never Really Worked for Staffing Companies

ICHRA started in 2020. The idea is simple: Employers set a fixed amount of money for each worker to buy personal health insurance. Workers pick their own plans from the Marketplace. This sounds good for staffing’s mix of workers who move around a lot. But in real life, it causes big issues:

Too Much Paperwork and Money Problems in Fast-Changing Jobs

Staffing companies have workers starting and leaving all the time. Setting up ICHRA means sorting workers into groups, like by family size or where they live, and making sure it follows ACA rules (where workers don’t pay more than about 9% of their income). With turnover as high as 419% for temps, this is a headache. Workers must shop for plans themselves, and many are lower-paid and not used to this. Companies end up spending time and money teaching them, which ruins the “easy” part of ICHRA.

Gaps in Coverage for Workers Who Switch Jobs Often

In staffing, jobs might last just days or weeks. With ICHRA, workers keep their own plans, but changing jobs can stop the money help, leaving them without insurance for a bit. This makes workers unhappy and more likely to quit. Other plans can start coverage right away, which fits staffing’s need for fast, simple benefits to get and keep people.

Hard to Make It Affordable for Lower-Paid Workers

Many staffing workers qualify for government help (subsidies). But ICHRA rules say if the company plan is “affordable,” workers can’t get that help anymore. If the money from the company isn’t enough, workers pay more and feel worse off. In jobs with lots of turnover, costs are already high, and ICHRA doesn’t fix that without companies giving more money—which they can’t always afford.

These problems show why ICHRA, even with predictions of growing to 15 million users by 2032, hasn’t become common in staffing. It focuses on choice, but staffing needs easy and practical options for unstable jobs.

The End of ACA Subsidies are Making ICHRA Problems Worse, But Creating Some Chances

The extra ACA subsidies ended in 2025. These capped how much people paid for insurance, no matter their income, and helped more people qualify. Now, premiums can jump up to 114% (or $1,016 more a year), hitting lower-paid workers in staffing the hardest. This change affects ICHRA in tricky ways:

Bigger Affordability and Fine Risks

With higher Marketplace costs, the money from ICHRA might not count as “affordable” anymore. Companies could face big fines (up to $4,460 per worker who gets help elsewhere). Staffing companies might need to give 20-50% more money, which hurts their tight budgets.

Short-Term Drop in Use, Hurting Hiring

Higher costs might make workers skip individual plans, leading to fewer sign-ups and more people without insurance—maybe 2-4 million across the U.S. In staffing, this makes it harder to find workers, as people look for jobs with steady benefits.

Some Chances to Help the Market

On the flip side, the high costs might push more people to use ICHRA as a way for companies to help without big changes. But without fixing the paperwork and turnover issues, it won’t take off in staffing.

Overall, the subsidy end makes ICHRA’s weak spots bigger, leading companies to look for simpler choices.

You Have Better Choices for Benefits

Benefits in a Card provides easy solutions for Staffing’s Fast-Paced World.

Currently, staffing companies are picking simple plans that meet rules, cut costs for the company, make things easy to run, and help keep workers—without the hassle of giving money for personal plans. BIC is a top choice, with over 30+ years helping high-turnover jobs like staffing. Their plans cost the company nothing in premiums, work great in places with 400%+ turnover, and include tools like tracking hours each week, starting coverage right away, and one easy system with no setup fees.

Minimum Essential Coverage (MEC) Plans: Meeting Rules Without Paying Premiums

BIC’s MEC gives basic check-up care to avoid big fines (up to $2,970 per worker). It’s optional for workers and they pay 100% through paycheck cuts—so zero cost to the company. Made for staffing, it tracks changing hours weekly, stops workers from getting subsidies (to cut other fines), and fits right into systems like Avionté or Bullhorn. Many companies see 100% worker sign-up because it’s so simple.

Minimum Value Plans (MVP): More Coverage with Steady Prices

For fuller protection, BIC’s MVP covers at least 60% of costs, stays affordable, and can be paid fully by workers (zero company cost). It tracks hours weekly and adds fixed payments for care with no out-of-pocket starts. Their special 2-year price lock—thanks to top insurance partners and no raises for over 10 years—protects from the 7-10% price jumps expected in 2026.

Extra Benefits and Fixed Payments: Helping Keep Workers in Tough Jobs

BIC’s optional extras—like dental, vision, accident, serious illness, short time off sick, life insurance, and online doctor visits for primary care, urgent needs, mental health, and skin issues—work with MEC/MVP. Workers pay, and it all tracks weekly for temps. A big plus is their FreeRx deal: Free endless generic and long-term meds (sent home), free short-term meds at over 70,000 stores, and the least expensive insulin on the market via Walmart. This fixes money worries from the subsidy end.

The Benefits in a Card Advantage

BIC’s system has a U.S. call center that speaks two languages (answers over 98% of calls), more than 140 plans to pick from, and ties like with the American Staffing Association (ASA). It’s the safest in staffing, with over 260 links to payroll and HR systems via BenefitSync API. This setup not only follows ACA rules but turns benefits into a way to get and keep workers during shortages.

Compared to ICHRA, BIC’s options are steady, easy to handle, and give quick help—much better for staffing’s needs. Companies using them say things run smoother and workers are happier.

In the end, ICHRA doesn’t line up with staffing’s quick changes and high turnover, and the ACA subsidy end makes it even less useful. By switching to trusted options like BIC’s no-cost, smart plans, staffing companies can follow rules, save money, and stand out in 2026’s hard market.

Choose Benefits That Work for Staffing

Call Benefits in a Card today to take your Agency to the next level. 800.908.1702 or visit benefitsinacard.com for your free consultation today.

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